MBA Strategy of Ducati Case Study Example | Topics and Well Written Essays - 1500 words

MBA Strategy of Ducati - Case Study ExampleFollowing its 1996 runniness crisis, Ducati, an Italian manufacturer of high-performance motorcycles, took several initiatives, under the guidance and leadership of Federico Minoli whose main aim was to arm the clubs brand by turning Ducati into a global brand that appea lead not merely to extreme customers but also to a broader spectrum of customers, enhance its portfolio by venturing into several new market segments and maturation and expand its sales and profitability. Ducati faced severe competition from the Japanese manufacturers such as BMW, KTM, Honda, Suzuki, Kawasaki and Yamaha in all in all the three major segments. Thus, in order to broaden its spectrum of revenue sources, Ducati, in 1997, entered into the business of accessories and apparels by getting a stake in Gio.ca.Moto a phoner that was already producing a line of accessories for Ducati, this contributed to 16.6% of its total revenues in the year 2000. Ducatis strat egic decision of outsourcing its production and logistic spare parts translated in greater availability of parts and improved distribution channels, while the decision of revising its pricing policy led to a phenomenal increase in the contribution of spare parts to total revenues. As of 2001, the companys outsourcing has grown to approximately 87% with the company planning to take it even higher to closely 90%. Due to the standardization of its products, Ducati was touted as one of the most efficient manufacturers in the industry, despite its comparatively low volumes in 2001 as shown in the table belowThe apparel and accessories business had grown systematically following the entry of Ducati in this line of business, and thus had only one strong contender Harley Davidson. In 2001, the company launched two basic models 996 and 748, each in 3 different versions. This contributed to almost 43% of the companys total revenues, the key competitors being targeted under this segment we re Yamaha, Suzuki, and Honda.